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Do Cryptocurrencies Really Have Trust Problem? [Opinion]

Blockchain technologists assert that with the arrival of Bitcoin, central establishment and financial institutions will soon become archaic.   Blockchain technology will run the world and corruption will be engineered out of survival. Civilization will become trustless.

Ironically, the vast majority of people still don’t trust cryptocurrencies. The technologists argue those individuals don’t appreciate the technical innovations following block chains. There’s dexterity of hand here: with Bitcoin, you no longer need to trust any centralized body or any third party.

Consequently, Bitcoin is trustless. So because we don’t need to believe banks or the individual we’re transacting with, there’s no belief at all? In reality, not trusting Bitcoin is totally reasonable. For the reason that Bitcoin is not trustless. In fact, Bitcoin necessitates far more trust than the US dollar. The key novelty of cryptocurrencies is that they distribute trust. They do not get rid of it.

Trust In Cryptocurrencies

Decentralized cryptocurrencies entail you don’t have to trust a vital party, according to a cryptonews post. After all, the Bitcoin practice dictates that every node stores a trace of every transaction and double-checks everything themselves. The trust is not missing; it’s just distributed across more parties.

So, where is the trust now?

You trust the coders not to build buggy or insecure software. You trust the miners not to conspire. If you don’t run a full node which you almost certainly don’t, there are only 10K Bitcoin full nodes in the world, and then you clearly trust any full node you happen to connect to. You trust the group of people not to hard-fork away from you. You are trusting nation-states and businesses not to close down mining, or launch a 51% attack. And, of course, you’re trusting that though you’re storing your cryptocurrencies, you don’t get your qualifications stolen.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Nagasunder Sharanappa is highly experienced in Content Management and development, Customer Escalation Management ,Payment Operations and Business Process Outsourcing Industry.

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